Introducing Matic – a brief overview of its features and capabilities
The price of has disrupted its short-term structure but continues to trade within a horizontal support range. MATIC serves as the native token of the Polygon network, which offers a layer 2 scaling solution focused on smart contracts. Technical analysis of MATIC over the daily time frame indicates a breakout above the gradually decreasing resistance line on March 29th, confirming the reclaiming of a minor support level at $1.Additionally, this invalidates the prior downtrend below this area (marked by the red circle)
The price fluctuations of Matic
However, despite the initial breakthrough, the price could not sustain an upward trend and failed to reach the Fib retracement level of 0.5 at $1.Consequently, this suggests the possibility of another price decline. If the price drops below the support level of $1.08, it may trigger a significant decline to the next support level of $0.Nevertheless, MATIC’s price could reach the resistance level of $1.25 if a rebound occurs. The daily RSI index is currently below 50 and decreasing, making it more susceptible to potential issues.
A short-term incident may trigger a significant decline
Upon analyzing the two-hour technical chart, it appears highly probable that there will be a downside breakthrough below the $1.08 region. This is because the upward-sloping parallel channel has been breached. Channels typically contain corrective movements such as A-B-C structures, indicating that the trend is bearish and the prior gain is a correction. A decrease in movement equal to the previously marked decrease in height will bring MATIC down to $0.95, resulting in stronger support levels for the corresponding area.
The forecast for Polygon’s price suggests it will likely break below the horizontal support level of $1.08 and decline to $0.However, reclaiming the previous channel would invalidate this bearish hypothesis and may lead to a potential rise to $1.25.
